' Apple + AT&T + iPhone = ' What, Exactly
for the non-Apple Part of this Equation?

With Ten Days Left 'til the iPhone's Debut, We Gain a Little Insight as to
How AT&T Stands to Benefit from This All-Star Game of Sorts


by Joe Leo, Columnist


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It was apparent that even they--Cingular Wireless/AT&T--of course, couldn't divulge details of the iPhone. At first, all this employee could tell us was that it would be in their store, and that it would be available on the 29th, pointing to a small poster advertising the event. (Ironic since the Apple Store had no such type of publicity related to the event).

We asked the employee other types of questions, and on condition that they not be named, they were glad to respond. We inquired about what types of phones sell the most and are the popular brands/models/configurations. Key features such as internet browsing, PDA-style phones, and of course, ones with music playing capabilities.

They told us that it all amounts to a customer's personal preference and that there weren't specific models that were hot items at the moment. (Wait until Friday the 29th!). They commented, "The mobile phone market is so cutting edge that it changes each month."

When asked if there was anything currently on the market that was close to an iPhone, implying about iPod capablities and others, they said that the technology in the iPhone isn't comparable to anything currently available on the U.S. market today-- pointing out that the LG Prada phone is very similar, but not available to customers here stateside.

That definitely will all change in a heartbeat, come next week!

To mirror the thoughts (or lack thereof) of the Apple Store employee we spoke with after our visit to the Cingular Wireless store, the AT&T employee said, "There's a lot we (AT&T) don't know. We know the cost, its size... we get about ten inquiries a day [in regard to the iPhone]."

That would make us number nine on the list, and number ten would be the customer who walked in to the store during our interview, inquiring about whether he could see the display model and play with it, or even buy the display model from them.

The employee pointed out that there were no display units available (while someone behind the desk joked that he was lying and that they had one locked up tight in the back), the only way to get one was to buy one boxed up--no touch and see before buying--and that they would be available on the 29th. And... that the store was already closed for the evening.

After they were done answering the customer-who-sneaked-in's questions, we managed to squeeze in a few more questions of our own with the AT&T employee before we had to leave the store ourselves (not realizing that the store was indeed closed, though they helped by dimming the main lights after that).

Since Apple Inc. is, supposedly, hoping to get more customers to switch to the Mac through sales of the iPhone, what is AT&T in it for? What do they gain from the partnership? Obviously, the first thing was more customers for themselves as well. Though not directly from our mouths, we'll point out here that as "Cingular," their service was reported to be not one of the best in the nation among the major wireless carriers, so more customers is crucial. The other?

"We're hoping that sales of the iPhone will increase sales of home Wi-Fi," said the employee, pointing out first that one, that was his role in the store (selling wireless internet access at home), second that, in order to use the iPhone, one will have to have wireless internet at home, and third, that AT&T is not just a wireless cellular service provider.

When AT&T took over the Cingular Wireless stores, they started marketing--according to this employee--all the services they offer to customers, such as cable, internet access, phone services, etc. The employee called it their "grand slam" deal, for those customers that choose to sign-up for everything that AT&T offers beyond wireless service in the owned and operated Cingular Wireless stores (or just plain "AT&T" stores).

So there is a bigger picture here with the iPhone, in terms of the non-Apple aspect of the story. AT&T's stake in the deal. "If the whole (AT&T) package is the 'grand slam,' then the iPhone is the batter that will hit it from home plate," they said.

In fact, customers--potential new customers--on just wireless service alone will already be a plus for the company based on MacsimumNews.com's report yesterday on research firm M:Metrics publishing data last week that showed 67% of customers planning to get an iPhone are not currently AT&T/Cingular Wireless customers.

The real big picture, at least the Mac-centric one, comes in terms of the cultural aspect/impact-- and this employee summed it up quite nicely. (Plus, they wanted to make sure we quoted them directly on it). "The iPhone is a pandemic of a zeitgeist. It has truly invaded the American cultural consciousness."

(Now to wait for the poltergeist from the other Steve down in Redmond, Washington).


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